26.06.202602:46:37UTC+00Soybeans Stay Near Multi-Month Lows

Soybean futures hovered above $11.20 per bushel, holding recent gains but still trading near four-month lows. Prices remained under pressure from weaker crude oil and a stronger US dollar, even as intense heat across key growing regions raised concerns about US crop conditions.

The National Weather Service forecast temperatures approaching 100 degrees Fahrenheit over the weekend, stretching as far north as the upper Midwest and as far east as the Carolinas. This heatwave is expected to persist from the Plains to the Atlantic Coast through July 4, heightening worries about potential stress on soybean crops.

On the energy front, progress in ongoing US–Iran peace talks has improved shipping flows through the Strait of Hormuz, bolstering expectations of increased global oil supply and driving crude prices lower. Soybean prices often move in tandem with crude oil because soybeans are a key feedstock for biofuel production.

Further downward pressure came from a firmer US dollar, as growing expectations of additional Federal Reserve rate hikes this year made dollar-denominated commodities more expensive for overseas buyers. Market participants are now watching closely for signs of renewed Chinese demand, following last week’s reported sale of 132,000 tons of US soybeans.